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When you think of innovation,
what comes to mind--
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creativity, success, advancement
and progress for society?
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Innovation is all of these.
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But it also triggers the process
of creative destruction, which
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is a concept introduced
by Schumpeter,
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as we have looked at previously.
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In this context,
innovation can be
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defined as a new idea or a
new discovery that will then
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increase productivity--
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in other words, help
us produce more.
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It could be an invention
that improves the production
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process, or it could
be the introduction
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of a new technology that
replaces part of the production
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line.
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Why would these
helpful innovations
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be disruptive and
create problems
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to those in the workforce?
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The new invention
of technology would
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prove to be better than the
old way of doing things,
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and we'd undoubtedly replace it.
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So businesses, firms,
and individual workers
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who use the old goods and
technology will lose profits,
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market share, or
rents, while those
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introducing the new
goods and technologies
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will take a larger
share of these.
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These are the winners
who have used innovation
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to generate new markets and
new business opportunities.
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